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Disaggregation Breaking an aggregate plan into more detailed plans Create Master Production Schedule for Material Requirements Planning We’ll talk more about disaggregating the plan level-by-level when we come to MRP and MRP II SJSU Bus David Bentley9

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Mixed Strategy Policy examples “no more than x% of workforce can be laid off in one quarter” “inventory levels cannot exceed x dollars” “backorders cannot exceed x units” May shut down manufacturing during the low demand season and schedule employee vacations during that time SJSU Bus David Bentley18

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Strategies for Adjusting Capacity Overtime and under-time Increase or decrease working hours Subcontracting Let outside companies complete the work Part-time workers Hire part-time workers to complete the work Backordering Provide the service or product at a later time period SJSU Bus David Bentley21

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Available-to-Promise (ATP) Quantity of items that can be promised to customer Difference between planned production (plus inventory on hand) and customer orders already received SJSU Bus David Bentley23